Bribery and Corruption in Venezuela: An American Business Perspective

Abstract

Venezuela possesses the largest crude oil reserves in the world and once had one of the fastest-growing economies in Latin America. Between 1974 and 1979, Venezuela was able to spend more money than in its entire independent history. Currently, Venezuela is perceived as the most corrupt country in the Latin America region. This Article discusses Venezuela’s transformation from one of the wealthiest Latin American countries to a country where poverty, social exclusion, and corruption is on the rise. The research presents corruption law in Venezuela and analyzes cases on how the law is enforced compared to the United States and other countries. This article also discusses challenges that businesses and entrepreneurs may encounter if investing in Venezuela and lastly, the article seeks to give recommendations for this entrepreneur.

Bribery and corruption occur worldwide in both developed and underdeveloped countries. Government officials typically address such crimes with laws to establish a legal framework that defines the types of corruption offenses and the consequences of violating them. The United Kingdom instituted the UK Bribery Act in 2010, and the U.S. has instituted the Foreign Corrupt Practices Act (FCPA) to enforce the violation of bribery laws domestically and internationally. Venezuela has had anti-bribery and anti-corruption legislation since the early 1980s; however, the enforcement of these crimes is weak. This paper adds to the literature about this important topic.

Keywords: bribery, corruption, Foreign Corrupt Practices Act, Venezuela